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How to stop your car from being repossessed

Even if you have worked hard and paid your car payments on time for years, a financial hiccup that prevents you from paying for your car several times could result in a repossession. However, by filing for Chapter 13 bankruptcy, some individuals may be able to stop a car repossession in its tracks through what is called an "automatic stay."

An automatic stay prevents debt collectors from trying to secure debts payments owed from you. Automatic stays also prohibit auto loan institutions from repossessing the vehicles of people who are delinquent on their payments. An automatic stay associated with a Chapter 13 filing can even help a vehicle owner to get his or her vehicle back after it has already been repossessed in certain situations.

If the car was repossessed prior to the bankruptcy filing, particularly if it happened shortly before filing, it might be possible to get the car returned. However, payment of the back payments needs to be included in the bankruptcy payment plan, and the individual needs to keep making the monthly car payments.

Those who face the threat of having their cars repossessed, and those who have already had their cars repossessed, may want to investigate whether Chapter 13 bankruptcy could help them keep their vehicles. Every case is different, but by discussing the facts of one's situation with an experienced bankruptcy lawyer, Louisville, Kentucky, residents will be able to determine whether their situations can get protection from repossession along with other benefits associated with the bankruptcy process -- like protection from creditor harassment, resolving outstanding debt and more.

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